[manc]

Why can’t they go back to how one had to have 20 or 15% down first?

That way it would show the loaner that the people were serious and they can afford the house.

[Vigilanteman]

An alternative would be shell homes where they would put in their own labor to lay carpeting, flooring, hang drywall and the like. If you can't afford to put sufficient money down, at least you can afford a little sweat equity.

This works really well with public housing in Japan and, over time, they will encourage you to take over ownership.

The complicated stuff like roofing, doors, windows, electrical and plumbing is done and people convert over the rest over time. Rent increases if certain jobs aren't done over a certain time frame and, if you decide to have someone else do them, you can opt out of the lower payments and get them done sooner.